Why has the talk about liquidity, so important after the 2008 financial crash, died away and talk is now about volatility. Shouldn’t we still be worried about liquidity? Risk management can’t only be about volatility.
Improper risk management can and or will negatively affect nations, companies as well as individuals. The recession that began in 2008 was largely caused by the loose credit risk management of financial firms. The recession that is looming on the horizon is due to the loose liquidity/volatilty risk management of derivatives (especially US treasuries) by the Central Banks.
